Model of the Influence of Air Pollution and Other Environmental Factors on the Real Estate Market in Warsaw in 2010–2022

Air pollution has a significant impact on the housing market, both in terms of property prices and buyer preferences, as well as urban development. Below, we present the main aspects of this impact. These may include a decline in property values in polluted areas, a change in buyer preferences (more buyers are taking environmental factors into account when choosing a home, including air quality—both outdoor and indoor—which translates into increased demand in ‘green’ neighborhoods), the development of energy-efficient and environmentally friendly buildings, the impact on spatial planning and urban policy, health effects, and the rental market. The study showed that air pollution has a significant negative impact on housing prices in Warsaw, particularly in relation to two pollutants: nitrogen dioxide (NO 2 ) and particulate matter (PM 2.5 ). As their concentrations decreased, housing prices increased, with the highest price sensitivity observed for smaller flats on the secondary market. The analysis used GRM and OLS statistical models, which confirmed the significance of the relationship between the concentrations of these pollutants and housing prices (per m 2 ). NO 2 had a significant impact on prices in the primary market and on the largest flats in the secondary market, while PM 2.5 affected prices of smaller flats in the secondary market. No significant impact of other pollutants, meteorological factors, or their interaction on housing prices was detected. The study also showed that the primary and secondary markets differ significantly, requiring separate analyses. Attempts to combine them do not allow for the precise identification of key price-determining factors.